In 2025, India’s solar energy sector experienced an unprecedented surge, cementing its position as the leading driver of the country’s renewable energy growth. The calendar year witnessed the addition of 38 gigawatts (GW) of new solar capacity, a record reflecting the combined impact of supportive government policies, strong investor confidence, and improved project execution across the country. This rapid expansion highlights India’s determination to boost clean energy while balancing the need for a reliable electricity supply to meet growing demand.
Government initiatives played a key role in this growth, particularly measures aimed at strengthening domestic manufacturing and improving quality standards. The Approved List of Models and Manufacturers (ALMM) has emerged as a pivotal policy instrument, ensuring that solar modules meet strict benchmarks while promoting the use of domestically produced components. This framework has significantly reduced reliance on imports and strengthened India’s solar manufacturing ecosystem. By December 2025, the country’s solar PV module manufacturing capacity reached 122 GW, marking a major milestone in its journey toward energy self-reliance.
By the end of the year, India’s total installed solar capacity had climbed to 135.8 GW, representing 65.58% of the nation’s total renewable energy capacity and contributing 26.44% to the overall power mix. This translates into a year-on-year increase of 41.08%, underscoring the accelerated pace of project commissioning. Both large-scale utility projects and rooftop installations, along with hybrid systems, played an important role in this achievement, expanding access to clean energy across urban and rural areas.
The growth of solar power has also had significant economic and social benefits. New projects have generated employment opportunities throughout the value chain, particularly in rural and semi-urban regions, while improving electricity access and stimulating local economies. Beyond these benefits, the increase in renewable energy capacity has strengthened India’s energy security by reducing dependence on imported fossil fuels and shielding the economy from global price volatility.
Despite the surge in solar capacity, coal continues to play a critical role in India’s power system. By December 2025, coal accounted for 42.75% of the country’s total installed capacity, highlighting the ongoing challenge of balancing renewable growth with the need for grid stability and uninterrupted electricity supply. As variable renewable energy makes up a growing share of generation, there is an increasing emphasis on advanced grid management, energy storage solutions, and flexible power systems to maintain reliability.
India’s total installed power capacity crossed 513 GW in 2025, recording an annual growth of 11.2%. Within this total, the solar sector has emerged as a central pillar of the clean energy transition. Its rapid expansion not only supports environmental goals but also fosters economic development and energy resilience. The achievements of 2025 demonstrate that India is on a clear path toward a more sustainable, self-reliant energy future, with solar power leading the way in transforming the nation’s electricity landscape.
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